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Grupo CAP negotiates Huachipato steel plant transfer with Aceros Aza
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Grupo CAP negotiates Huachipato steel plant transfer with Aceros Aza

From Cooperativa · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Grupo CAP is negotiating with Aceros Aza to transfer ownership of the Huachipato steel company.
  • The deal aims to restart steel production at the disused Talcahuano facilities, with Aza potentially acquiring 20% of the land for an electric steel mill.
  • The operation is valued at approximately $400 million, including $120 million for the steel operation and the rest for industrial reconversion.

Grupo CAP is in formal, non-exclusive negotiations with Aceros Aza to transfer ownership of its Huachipato steel company. The discussions aim to revive steel production at the currently disused facilities in Talcahuano, Biobío Region.

While specific financial details remain undisclosed, reports suggest the deal involves Aceros Aza acquiring 20% of the land to develop an electric steel mill. The total investment for this operation is estimated to be around $400 million. This figure includes approximately $120 million for the acquisition of the steel operation itself, with the remaining funds earmarked for the comprehensive industrial reconversion of the complex.

The potential transfer could see the current Huachipato steel complex transformed over the next two years. This development offers a glimmer of hope for the region's steel industry, which has faced significant challenges.

DistantNews Editorial

Originally published by Cooperativa in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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